Indiana amendment could result in less reimbursement for rural hospitals


INDIANAPOLIS, Ind. (WEHT)- Indiana hospitals warn that a proposal at the statehouse could have terrible unintended consequences.

They say it could result in the closure of many rural hospitals across the state. An amendment in the House bill would result in less reimbursement for the hospital’s off-site locations. At this time, it is unclear how much less.

Lawmakers are debating the best ways to lower prices for patients. One way they’re considering is whether or not a hospital’s location should determine the cost for the services it provides.

Indiana Hospital Association President Brian Tabor says, “It would be devastating. Hundreds of millions of dollars if not more in cuts. That would mean closing services, reduction in staff, and even the closure of entire hospitals and nobody wants that for Hoosiers. That’s not good healthcare.”

This bill is now headed to the Senate floor on second reading where it could be amended again.
If approved, the house would also have to agree on the new language.

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(This story was originally published on March 2, 2020.)

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